ISLAMABAD: The Petroleum Division on Tuesday announced a new levy of Rs1,243 per million British thermal units (mmbtu) on off-grid captive power plants (CPPs) for December 2025.
According to an official notification, the levy has been imposed under Section 3 of the Off-grid (Captive Power Plants) Levy Act 2025, enacted earlier this year by Parliament. The measure applies to natural gas and RLNG consumed by captive power plants operating outside the national grid.
The government aims to generate Rs105 billion in revenue from the levy during fiscal year 2025–26. As per the Act, the proceeds will be utilised to reduce electricity tariffs for all consumer categories, except lifeline users.
The levy has been structured to increase progressively. Initially set at 5 percent over the industrial tariff, it will rise to 10 percent from August 2025, 15 percent from February 2026, and stabilise at 20 percent from August 2026 onwards.
Previously, the levy stood at Rs690 per mmbtu in August 2025. For earlier months, the rates were Rs570 in April, Rs550 in May, and Rs402 in June, reflecting a gradual upward trajectory under the new legislative framework.
